The one must-know thing that could help marijuana investors

In the runup in marijuana stocks earlier this year, many less-informed investors aggressively bought marijuana stocks near their highs. 

That was precisely the time when those who were following segmented money flows were selling into the strength. Those who bought near the highs are now sitting on large unrealized losses. From emails I get, many of those investors are bewildered. After all, marijuana has a bright long-term future. And they bought when everyone else was buying and technical analysis was giving buy signals.

When I wrote “How to potentially become a marijuana millionaire, albeit carefully,” a lot of money had been made in marijuana stocks by following segmented money flows. Segmented money flows are like X-rays. 

The one “must-know” thing for investors who are serious about making money in marijuana is to learn the X-rays of marijuana stocks using money flows. Let’s examine the latest money flows in marijuana stocks.

Chart

Please note the following:

• Momo (momentum) crowd money flows are positive in Aurora Cannabis ACB, -2.54% Aphria APHA, -1.61%  and Canopy Growth CGC, -0.98% However, smart money flows are neutral in those stocks.

• In Cronos CRON, +10.95% smart money flows are mildly negative, but momo crowd money flows are positive. A short-squeeze potential in Cronos would be extremely positive. More on short squeezes later.

• Smart money flows in marijuana ETF MJ, +0.21% is negative. 

• Momo crowd money flows are negative in Acreage Holdings ACRGF, +1.67%Liberty Health LHSIF, -3.75% and MedMen MMNFF, -2.56%

• Momo crowd money flows are positive in Curaleaf CURLF, +7.71% and Tilray TLRY, -2.60% but smart money flows are negative.

• Momo crowd money flows are very positive in New Age Beverages NBEV, -6.61% but smart money flows are neutral.

• Corbus Pharmaceuticals CRBP, -2.12% is a small biotech company, but it’s also grouped with marijuana stocks. Smart money flows are positive. This stock has come under a vicious short attack. 

• In other marijuana-related stocks, smart money flows are negative in GW Pharmaceuticals GWPH, -0.80% KushCo Holdings KSHB, +4.28% Scotts Miracle-Gro SMG, +0.52% and Constellation Brands STZ, +1.32%

• Smart money flows are neutral in Craft Brew Alliance BREW, -0.39%

• Marijuana stocks often do not correlate well to the Dow Jones Industrial Average DJIA, +0.68% S&P 500 ETF SPY, +0.67% and Nasdaq 100 ETF QQQ,